President Maduro Suggest the Oil Price Should Be at USD88.

President Nicolas Maduro said the oil price now is just the half of the reasonable price, the reasonable price should be roughl $88 ,then it can guarantee the investments in coming years ,he conveys this to the OPEC and non-OPEC producer nations’ leaders. He explains Venezuela depends on oil for about 96% of hard currency income .

“We are going to present proof, technical elements, at this meeting tomorrow, that the average price needed to guarantee global investments in the next five to 10 years should be $88,If the price of oil stays at $40, there will be a depreciation of investment, and within a few months we are going to see a price of $150, $200. ”

Maduro said he had sent a letter to heads of states of those nations and he is trying to recover the oil market. Venezuela was working on a proposal to establish a “technical, coordinating committee” among producer nations to oversee production, market and price matters in coming years. Maduro’s meaning is investment reducing of the oil production and transportion projects will reduce the oil production in future,then the oil price will increase sharply.

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To Haihao group, we have feel the reduction pressure of the oil projects investment, the market of steel pipes and butt welding pipe fittings for pipeline are decreased slowly than before. We would have to make some adjustment if the markets continue in this way .